Retiring in 2020? 5 Moves to Make Today
Congratulations! After a long career, you're finally gearing up to retire, and it's a milestone you're no doubt excited for. But if you're convinced 2020 is the year you'll leave the workforce for good, be sure to make these key moves first.
Having a budget is just as important during your golden years as it is for your working years. Without one, you'll risk overspending at a time in life when you should, if anything, be living more frugally due to being on a fixed income. Take a little time to figure out what your essential living expenses will look like in retirement, and then add in a reasonable amount for entertainment (technically not a necessity like housing and food, but important nonetheless). From there, you can see if your various income streams will allow you to maintain the lifestyle you want, or if you'll need to make changes to avoid spending too aggressively.
Your retirement savings, combined with the income you receive from Social Security, will dictate how much money you can afford to spend on an ongoing basis. But it's easy to look at your portfolio balance, see a large number at the top of a printout or screen, and think you're set. In reality, you'll need to see how much annual income that balance allows for.
Source Fool.com
